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Mooniswap Crypto Exchange Review: How It Boosts Liquidity Provider Earnings

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Mooniswap Crypto Exchange Review: How It Boosts Liquidity Provider Earnings
28 October 2025 Rebecca Andrews

Mooniswap Liquidity Earnings Calculator

Trade Details

Results

For a trade of 0 USDC with 0% slippage:

Uniswap LP Earnings: 0.00 USDC

Mooniswap LP Earnings: 0.00 USDC

Difference: 0.00 USDC (0.00% more)

How it works: Mooniswap redirects arbitrage profits to liquidity providers. On Uniswap, this profit goes to arbitrage bots.

Most crypto traders know Uniswap. But if you're supplying liquidity to decentralized exchanges, you’re probably leaving money on the table. Mooniswap isn’t just another DEX-it’s a smarter way for liquidity providers to earn more by turning arbitrage profits into your income.

What Makes Mooniswap Different?

Mooniswap launched in August 2020 as a project from the 1inch team, built on Ethereum and designed to fix a core problem in AMMs: arbitrageurs stealing profits from liquidity providers. Unlike Uniswap, where price changes happen instantly after every trade, Mooniswap uses a delayed price update system called virtual balances.

Here’s how it works: when someone swaps tokens, the price doesn’t update right away. Instead, the system holds the new rate in a virtual balance for about five minutes. During that window, arbitrage bots have a harder time jumping in and exploiting the price gap. The profit they would’ve made? It stays inside the liquidity pool.

This small delay is the key. While Uniswap V2 lets arbitrageurs capture nearly all slippage revenue, Mooniswap redirects it back to liquidity providers. According to internal simulations by the 1inch team, this boosts earnings by 50% to 200% compared to Uniswap V2. That’s not theoretical-it’s backed by real trading data from the Ethereum network.

How Liquidity Providers Earn More

If you’re supplying ETH and USDC to a pool on Uniswap, you earn a share of the 0.3% trading fee. On Mooniswap, you earn that same fee-but you also get a slice of the slippage revenue that would’ve gone to bots.

For example, if a trader swaps 10,000 USDC for ETH and the price moves 2% during the trade, Uniswap lets the arbitrageur buy low and sell high, pocketing the 2%. Mooniswap delays that price adjustment. The arbitrageur still acts, but the price they see is still close to the old rate. Their profit shrinks-and the difference gets added to your pool.

This isn’t magic. It’s economics. By making arbitrage less profitable, Mooniswap turns a cost for liquidity providers into a revenue stream. The protocol doesn’t charge extra fees. It just redistributes what was already being lost.

How Mooniswap Compares to Uniswap

Comparison: Mooniswap vs Uniswap V2
Feature Mooniswap Uniswap V2
Price Update Speed Delayed (5-minute virtual balance window) Instant
Liquidity Provider Earnings 50-200% higher than Uniswap V2 Standard 0.3% fee only
Arbitrage Profit Capture Redirected to liquidity pools Kept by arbitrage bots
Fee Structure Flexible; up to 5% can go to integrators Fixed 0.3%
Gas Costs Same as Uniswap (Ethereum network fees) Same as Mooniswap
Wallet Required MetaMask, WalletConnect, etc. Same

For traders, the delay might feel like slower execution. But for liquidity providers, it’s a game-changer. You’re not just earning fees-you’re earning from the very inefficiencies that hurt other AMMs.

Split illustration showing arbitrage bots stealing coins from Uniswap versus coins flowing into Mooniswap's delayed-price pool.

How to Use Mooniswap

Getting started is simple if you’ve used any DeFi platform before:

  1. Connect your wallet (MetaMask, Coinbase Wallet, or any EVM-compatible wallet).
  2. Make sure you have enough ETH to cover gas fees-usually $5-$15 depending on network congestion.
  3. Go to the Mooniswap interface and choose “Trade” to swap tokens or “Add Liquidity” to earn fees.
  4. When adding liquidity, you’ll receive LP tokens. These represent your share of the pool and are burned when you withdraw.

No KYC. No deposits. No middleman. Your funds stay in your wallet at all times. That’s the DeFi promise-and Mooniswap delivers it without the fluff.

Who Should Use Mooniswap?

Mooniswap is best for:

  • Liquidity providers who want higher returns than Uniswap
  • Traders who don’t mind a 5-minute delay in price updates
  • Users already in the 1inch ecosystem (who can use 1INCH tokens for discounts)
  • Those comfortable with Ethereum gas fees and self-custody

It’s not ideal for:

  • New crypto users unfamiliar with wallets or gas fees
  • Traders needing instant execution (e.g., high-frequency arbitrage)
  • Anyone trading on chains other than Ethereum

If you’re serious about earning from DeFi, Mooniswap is one of the few protocols that actually pays you for doing the right thing-providing liquidity. Most platforms just take your tokens and charge fees. Mooniswap lets you profit from the system’s own friction.

DeFi town at dusk with residents adding tokens to a glowing Mooniswap pool that blooms into fee flowers.

Limitations and Risks

No system is perfect. Mooniswap’s biggest downside? Liquidity depth. Compared to centralized exchanges or even Uniswap, Mooniswap’s pools are smaller. That means larger trades can still cause slippage-even with the virtual balance system.

Also, if you’re trying to arbitrage yourself, the 5-minute delay means you won’t get the fastest prices. You’re competing with bots that have better tools and faster connections. For most users, that’s fine. For professional arbitrageurs, it’s a barrier.

And like all Ethereum-based protocols, you’re at the mercy of network congestion. During peak times, gas fees can spike above $50. That’s not Mooniswap’s fault-but it’s a reality of using DeFi on Ethereum.

The Bigger Picture: Mooniswap in DeFi

Mooniswap isn’t just a DEX. It’s a proof of concept for a new kind of economic design in DeFi. Instead of treating arbitrage as a necessary evil, it turns it into a revenue engine. This idea has influenced other protocols, and even Uniswap has explored similar concepts in later versions.

It’s also tightly integrated with the 1inch DEX aggregator. If you use 1inch to find the best price across multiple exchanges, you’re already interacting with Mooniswap’s underlying tech. The 1INCH token can be used for fee discounts on both platforms, creating a sticky ecosystem.

The team has hinted at reducing fees to 0% in the future. That’s bold. Most DEXes charge fees to survive. Mooniswap might survive by making liquidity provision so profitable that users stay even without fees.

Final Thoughts

Mooniswap doesn’t try to be everything. It doesn’t offer fiat on-ramps, margin trading, or NFT swaps. It focuses on one thing: making liquidity provision more profitable. And it does it better than anyone else.

If you’re supplying liquidity to any AMM, you owe it to yourself to test Mooniswap. The difference in earnings isn’t small-it’s dramatic. You’re not just swapping tokens. You’re participating in a smarter financial system.

It’s not for everyone. But if you understand DeFi basics and want to earn more from your crypto, Mooniswap is one of the most compelling options on Ethereum today.

Is Mooniswap safe to use?

Yes, but only if you understand DeFi risks. Mooniswap is a non-custodial, open-source protocol audited by reputable firms. Your funds never leave your wallet. However, smart contract bugs, Ethereum network failures, or extreme market volatility can still lead to losses. Always start with small amounts.

Do I need 1INCH tokens to use Mooniswap?

No, you don’t need 1INCH tokens to trade or add liquidity. But holding them can reduce your trading fees by up to 5%. If you’re active on the 1inch ecosystem, using 1INCH is a smart way to save.

Can I use Mooniswap on mobile?

Yes. Any mobile wallet that supports Ethereum (like MetaMask Mobile or Trust Wallet) works with Mooniswap. Just open the website in your phone’s browser and connect your wallet. The interface is responsive and works well on smaller screens.

Why isn’t Mooniswap as popular as Uniswap?

Because it’s newer and doesn’t market itself as aggressively. Uniswap has brand recognition and a simple interface that appeals to beginners. Mooniswap targets experienced DeFi users who care about maximizing returns. Its growth is slower but more steady-driven by real yield, not hype.

Does Mooniswap support other blockchains?

No. Mooniswap only operates on Ethereum. If you want to trade on other chains like Polygon or Arbitrum, you’ll need to use other DEXes. The 1inch aggregator can route trades across chains, but Mooniswap itself remains Ethereum-only.

Rebecca Andrews
Rebecca Andrews

I'm a blockchain analyst and cryptocurrency content strategist. I publish practical guides on coin fundamentals, exchange mechanics, and curated airdrop opportunities. I also advise startups on tokenomics and risk controls. My goal is to translate complex protocols into clear, actionable insights.

18 Comments

  • Prateek Kumar Mondal
    Prateek Kumar Mondal
    October 30, 2025 AT 07:55

    mooniswap is legit if you wanna earn more from your lp

  • William P. Barrett
    William P. Barrett
    October 31, 2025 AT 23:35

    It's wild how a 5-minute delay can flip the entire incentive structure. Most protocols treat arbitrage as a tax on liquidity providers. Mooniswap turns it into a dividend. This isn't just a tweak-it's a philosophical shift in how we think about market efficiency. The bots aren't evil, they're just the old system's feedback loop. Mooniswap rewrites the rules without changing the game. And honestly? That's the most elegant kind of innovation.


    It reminds me of how early electric grids didn't just replace steam engines-they redefined value distribution. Same energy, different ownership. Here, the same trades, different profits. The real win isn't the 200% boost-it's that liquidity providers finally get to keep what was always theirs.

  • Ron Murphy
    Ron Murphy
    November 1, 2025 AT 15:39

    Been using it for 6 months. Gas is still a pain but the yield boost is real. My ETH-USDC pool is pulling 1.8% APR vs 0.9% on Uniswap. Not magic, just math. The virtual balance thing works better than I expected-bots still try, but they're eating dust. Also, the 1inch integration is seamless if you're already in that ecosystem.

  • Jasmine Neo
    Jasmine Neo
    November 2, 2025 AT 05:19

    Oh great another 'decentralized' platform that's just a rebrand of Uniswap with a 5-minute lag. Who the hell wants delayed execution? You're not earning more-you're just letting bots get slower at stealing from you. And don't get me started on Ethereum gas fees. This is just a glorified tax on the stupid who think DeFi is 'free money'. The only thing Mooniswap is good for is feeding the 1inch token pumpers.

  • Lawrence rajini
    Lawrence rajini
    November 2, 2025 AT 21:49

    Yesss this is the real deal 🚀 I switched all my LP from Uniswap last month and my returns jumped 140% overnight. No cap, no KYC, just pure DeFi magic. The delay? Honestly I didn't even notice. I'm not trading every 2 minutes. If you're HODLing and supplying, this is the only way to go. 1inch + Mooniswap = ultimate combo 🔥

  • Nick Cooney
    Nick Cooney
    November 4, 2025 AT 09:15

    so... mooniswap is just uniswap but slower? wow. groundbreaking. i bet the devs also invented the wheel. also, i just checked my wallet and my gas fees are still $27. thanks for nothing. 🤡

  • Clarice Coelho Marlière Arruda
    Clarice Coelho Marlière Arruda
    November 5, 2025 AT 02:02

    ok but why is everyone acting like this is new? i swear i saw a reddit post about this in 2021. also, does anyone else get nervous when a protocol says '50-200% higher earnings'? sounds like a rug pull waiting to happen. just saying...

  • Matt Zara
    Matt Zara
    November 7, 2025 AT 01:00

    if you're new to DeFi, just start with uniswap. mooniswap's not for everyone. but if you've been doing this for a while and you're tired of bots eating your profits? this is the upgrade you didn't know you needed. no hype, just better math.

  • Jean Manel
    Jean Manel
    November 7, 2025 AT 02:28

    Another crypto bro fantasy. You think you're 'earning more'? You're just gambling on a protocol that hasn't been stress-tested in a bear market. When the next crash hits and liquidity evaporates, you'll be the one screaming about impermanent loss while the devs cash out on 1INCH. This isn't innovation-it's a Ponzi dressed up as finance.

  • Brian Collett
    Brian Collett
    November 7, 2025 AT 07:14

    the virtual balance thing is genius honestly. bots are still active but their profits are cut in half. i ran the numbers on my pool and it's like getting free money. no fees, no tricks. just better design. why isn't everyone using this?

  • Wayne Overton
    Wayne Overton
    November 9, 2025 AT 06:39

    gas fees are killing me

  • Alisa Rosner
    Alisa Rosner
    November 10, 2025 AT 16:55

    OMG I just tried Mooniswap and it was SO EASY! 😍 I connected my MetaMask, added ETH-USDC, and boom-my APY jumped from 0.8% to 2.1%! 🎉 I didn’t even know what “virtual balances” meant but it just WORKED! Thank you for explaining it so clearly! 💖

  • MICHELLE SANTOYO
    MICHELLE SANTOYO
    November 11, 2025 AT 02:40

    They say Mooniswap is 'better' but what they're really saying is 'more complex' and 'more centralized in spirit' because now your earnings depend on a 5-minute delay that only the 1inch team controls. What if they change the delay? What if they front-run their own protocol? This isn't decentralization-it's a slow-motion cartel with a whitepaper.

  • Saurav Deshpande
    Saurav Deshpande
    November 12, 2025 AT 07:35

    they're not telling you the real reason mooniswap exists. the 1inch team is quietly buying up all the liquidity and using it to manipulate prices on other DEXes. the 'delay' is a front. the bots you think are losing? they're owned by the same people who built mooniswap. you're not earning more-you're funding a hidden market manipulation scheme. wake up.

  • Frech Patz
    Frech Patz
    November 12, 2025 AT 12:00

    While the economic model is theoretically sound, empirical validation beyond the 1inch team's internal simulations is limited. The dataset used for the 50-200% yield increase claim lacks peer-reviewed transparency. Until independent, audited analytics are published-preferably with time-series data across multiple market regimes-the claim remains speculative.

  • Derajanique Mckinney
    Derajanique Mckinney
    November 13, 2025 AT 09:51

    why is everyone so excited? this is just a scam to get you to use 1inch tokens. they want you to buy the coin. don't fall for it. the 'delay' is just a way to make you think you're getting something extra. you're not. you're just being manipulated.

  • Rosanna Gulisano
    Rosanna Gulisano
    November 14, 2025 AT 10:14

    you're helping the rich get richer while normal people pay gas fees. this isn't finance, it's exploitation.

  • Cory Munoz
    Cory Munoz
    November 16, 2025 AT 10:10

    I appreciate the thought behind this. Honestly, I’ve been on Uniswap for years and never realized how much I was losing to bots. Mooniswap doesn’t feel like a gimmick-it feels like a correction. It’s not about being the fastest, it’s about being fair. And for someone who just wants to hold and earn, that matters more than speed.

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